Geothermal energy backers appeal to Massachusetts legislators for state incentives

BOSTON – Engineers who tap the heat and chill of the Earth hope the state Legislature will encourage the geothermal industry by including it alongside solar, wind and biogas, making it available for state incentives.

“Our strategy helps building owners reduce their energy costs with little to no money out of pocket,” Michael Hogan, a University of Massachusetts graduate and president of Paradigm Partners in Medford, told the Committee on Telecommunications, Utilities and Energy this week.

Hogan said that if Senate Bill 1593, filed by Sen. Barry Finegold, D-Andover, becomes law, his revenues could grow between $500,000 and $1 million, allowing him to hire one or two more people.

While geothermal has long been a feature in some volcanic countries, such as Iceland, the energy source is less ubiquitous in the Bay State, where the ground is also not warmed by lava and other activity.

New England Renewable Energy Systems president Edward Malloy says the technology he uses involves a well drilled into the ground that can extract heat, even from ground at a cool 40 degrees, or alternatively can be used to cool a home.

“These systems have been going in for a while, but very niche,” Malloy told the News Service, estimating about 5,000 such systems in place in Massachusetts. He told the committee that “99 percent” of the heat extracted from the ground is solar energy because of “the rotisserie effect of the Earth and sun.”

The administration of Gov. Deval Patrick has put its support behind Finegold’s bill as well, asking only that it include a provision requiring that thermal energy facilities have “low emissions” and “be energy efficient,” Kates-Garnick told the committee.

Kates-Garnick also offered a vague admonition to the committee whose chairmen are Sen. Benjamin Downing, D-Pittsfield, and Rep. John Keenan, D-Salem.

"We know that there are many bills in front of you, that you’re going to be considering, and as you go through your consideration and your study of these bills, we ask you to think about them in their totality, and while many of them have good intention, there are a few that we feel could be very counterproductive to this renewable energy progress that we’ve made in Massachusetts,” Kates-Garnick said.

After the hearing, she declined to specify for the News Service any bills she found “counterproductive,” saying the committee is “early on” with its work.

“Massachusetts is leading the way in renewable energy and we want to continue our nation leading policies. We are appropriately cautious with any changes which could impact this,” said Mary-Leah Assad, spokesperson for the state Department of Energy and Environmental Affairs, when asked about the administration’s specific concerns.
“This includes changes to the (Renewable Portfolio Standard) or net metering programs. If not considered carefully, policy changes could be counterproductive to existing statutes, policies and regulations which are aimed to foster renewable energy sector growth while keeping ratepayer impacts at bay.”

Kates-Garnick also backs House Bill 2915 filed by Rep. Tom Calter, D-Kingston, that would require energy distribution companies to purchase any solar renewable energy certificates that are unsold at the end of a year at a certain price. She said the legislation would create a “hard floor,” giving confidence to investors in solar power, thereby lowering financing costs for the projects.